US Treasury Secretary Janet Yellen said that the available cash reserves in the Treasury may run out in October. She called on the government to increase the debt limit. This is reported by the Financial Times.
In his letter to congressional leaders, Yellen writes that he cannot give an accurate forecast of when the cash will run out, but it is most likely to happen during "October". She noted that delaying until the "last minute" will seriously affect business, consumer confidence, the cost of short-term loans, and the country's credit rating. The economist urged to "act" and increase the debt limit.
"When all available measures and available means are completely exhausted, the United States will be unable to fulfill its obligations for the first time in history. The delay will call into question the ability of the federal government to perform all its functions. Which is likely to cause irreparable damage to the US economy and global financial markets, " she added.
Yellen has repeatedly warned the US Congress about the threat of default if the debt limit is not increased by October 1. In her opinion, if this does not happen, then the possibility of paying financial obligations will be severely undermined.